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How is the market demand for free hosting > How many signups can I get per day & how?

I completely agree with deeplist, the demand for web hosting has dropped in general, theres plenty of younger starting out designers out there wanting free hosting. The price of servers has dropped dramatically these day's, so costs of running a free host has dropped too. It's just the time needed running one.

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I wouldn't exactly call us pessimists... most like pioneers to a market that's changed dramatically.
Many people including myself are still offering free web hosting but this can be a pain for the web hosts, many free "clients" are using free hosting for phishing schemes or other harmful scripts. So my opinion is that a free service can be harder to maintain then a paid hosting where the clients pay to use the service for their business not for "hacking" activities. So if you have "500 subscriptions" a day like you would like (it is almost impossible these days for this amount of users signup , i personally get 2-3 max 10 users a day) trust me, you would get mad about the problems will appear.
These days, it's not uncommon for the scammers to drop a few dollars to purchase the lowest paid plan available and then promptly upload malicious scripts. As soon as it's discovered, which is almost always instantly, the account is closed and that's the end of it. I don't provide refunds for those who knowingly abuse the services, nor do they ever ask for refunds either.
Stay away from these schemes.Totally a hug waste on efforts. Just an FYI.
If you get on to the first page of search engines and if you are reliable enough, you can get that much sign ups. Back in the day while we were providing free web hosting, we had around 50 sign ups daily.
Now a days there are many providers who providing the services at very affordable prices, so the free hosting is not so much effective in market. Its there but very less.You can go with the SEO as it helps to increase you market as well as ranking.